FTC Targets Porn Spammers

The Federal Trade Commission said Tuesday it won a court order to shut down illegal advertising for six companies accused of profiting from thousands of X-rated e-mails directing people to their online pornography sites in the government's first legal case involving adult Internet spam.

A federal judge in Las Vegas on Jan. 5 granted the commission's request for a restraining order against the companies, their executives and an affiliate for allegedly violating federal laws governing commercial electronic mail, commonly known as spam. The FTC on Tuesday will seek a permanent injunction shutting down the network's illegal e-mail ads.

It's the first time the agency has taken legal action under a rule that requires a label in the subject line of sexually explicit e-mails. The law also holds others liable for operating Web sites that benefit from fraudulent pornographic spam.

"It's not just the people who push the buttons to send spam" who are liable, said Eileen Harrington, director of the FTC's marketing practices division.

The Nevada companies named in the FTC complaint were Global Net Solutions Inc., Open Space Enterprises Inc., Southlake Group Inc., and WTFRC Inc., which does business as Reflected Networks Inc. Also named in the complaint were Global Net Ventures Ltd., of London and Wedlake Ltd., which the FTC said is reportedly based in Riga, Latvia.

The executives of those companies were named in the complaint along with an individual, Paul Rose. The FTC said Rose sent hundreds of thousands of illegal spam e-mails directing recipients to the sites operated by the companies named in the filing.

Among other alleged violations, the e-mails did not include the required "SEXUALLY EXPLICIT" warning in the subject line, falsely promised free membership to the Web sites and prevented recipients from stopping the unwanted e-mails.

Those requirements are part of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, dubbed "Can Spam." Spammers who violate the rule face possible imprisonment and criminal fines of up to $250,000 for individuals and $500,000 for an organization.

Tracking down violators can be difficult because spammers often try to escape being directly identified by using forged return addresses or by bouncing their e-mails through unprotected relay computers on the Internet.

Harrington said the agency located the companies and individuals through e-mails consumers sent the FTC's data base in the spring. The defendants, who she said operate as one entity, are barred by the court action from sending out spam but are permitted to operate the web sites involved.

By Laurie Kellman